ABSTRACT

Financial products act as an investment avenue and supply the specified

financial security to the investors supported the risk-return profile of the financial
products. In the past, traditional financial products were offered in India by banks
(deposit account, credit account), life insurance Corporation (LIC), and postal
department (recurring deposit, National Saving Certificate, Kisan Vikas Patra).
However, in recent years with the arrival of liberalization of monetary services
industry, diverse financial products are introduced like mutual funds, shares,
derivatives, life and non-life insurance schemes (Unit Linked Investment Plans
(ULIPs), pension plans, children education plans, etc.). Investment preference differs
from person to person, as every individual behaves differently while investing.
Investment behavior of a private is guided by his own set of circumstances. With an
expectation of generating high returns over a period of your time and certain levels
of risk, individuals invest in several financial products. The present study is an effort
to research the investment preferences of salaried individuals towards
financial products supported various demographic factors.

TABLE OF CONTENTS

CHAPTER NO. TITL PAGE NO.

E
ABSTRACT i
LIST OF TABLES I
i
i
LIST OF CHARTS v
1 INTRODUCTION 1
 1.1 Background of the Study 1
1.2 Industry Profile 8
1.3 Statement of the Problem 1
1

1.4 Scope of the Study 1

2

1.5 Objectives of the Study 1

3

1.6 Limitations of the Study 1

4

2 Review of Literature 1
5

3 Research Methodology 3
1

3.1 Research Design 3

1

3.2 Sampling Technique 3

1

3.3 Sources of Data 3

2

3.4 Structure of Questionnaire 3

2

3.5 Sample Size 3

3

3.6 Period of Study 3

4

3.7 Research Hypothesis 3

4

4 Data Analysis and Interpretation 3

5

4.1 Percentage Analysis 3

5

4.2 ANOVA 6
5
 4.3 ANOVA 6
7

4.4 Independent T Test 6

9

4.5 Chi Square Test 7

0

4.6 Chi Square Test 7

2

5 Findings, Suggestions and Conclusion 7

4

5.1 Findings 7
4

5.2 Suggestions 7
6

5.3 Conclusion 7
8

References 7
9

Appendix – 1 (Questionnaire)
Appendix – 2 (Article)

LIST OF TABLES

TABLE NO. TITLE OF THE TABLE PAGE NO.

4.1 Gender of the respondents 35
4.2 Age of the respondents 36
4.3 Education details of respondents 37
4.4 Marital status of respondents 38
4.5 Number of dependents of respondents 39
4.6 Current employment of respondents 40
4.7 Annual household income of respondents 41
4.8 The ability to manage respondents own finances 42
4.9 Current financial investment of the respondents 43
4.10 Major savings objectives of the respondents 44
4.11 Monthly savings percentage of the respondents 46
4.12 Loan repayment percentage of respondents 47
4.13 Respondents regular income savings pattern 48
4.14 Respondents Spending pattern 49
4.15 Usage of generally planned savings of the 50
respondents
4.16 Provision for emergency fund to meet exigencies 51
4.17 Utilization of income tax benefits 52
4.18 Income tax filing of the respondents 53
4.19 Income tax planning for upcoming years 54
4.20 Respondents regular contribution to retirement 55
account
4.21 Planned retirement age of the respondents 56
4.22 Pension amount after retirement of the respondents 57
4.23 Familiarity of investment markets by respondents 58
4.24 Level of risk tolerance 59
4.25 Respondents preferred investment instruments 60

4.26 Primary need for life insurance policy 61

4.27 Respondents objective of life insurance policy 62
4.28 Reason for medical insurance 64
4.29 Showing descriptive statistics of the respondents 65
4.30 ANOVA of the respondents between various age 66
groups on their preference of savings of regular
income

4.31 Descriptive statistics of the respondents 67

4.32 ANOVA of the respondents among annual household 68
income on their regular spending pattern
4.33 Difference between the preference of respondent‘s 69
regular contribution to their retirement account and
gender
4.34 Cross tabulation between familiarity of investment 70
markets and risk tolerance to achieve higher level of
return
4.35 Chi Square results between familiarity of investment 71
markets and risk tolerance to achieve higher level of
return
4.36 Cross tabulation between regular savings pattern 72
and
spending pattern of the respondents
4.37 Chi Square results between regular savings pattern 73
and spending pattern of the respondents

LIST OF CHARTS

CHART NO. TITLE OF THE TABLE PAGE NO.

1.1 Need for Financial Plan 2
1.2 Investment options for Individuals 7
4.1 Gender of the respondents 35
4.2 Age of the respondents 36
4.3 Education details of respondents 37
4.4 Marital status of respondents 38
4.5 Number of dependents of respondents 39
4.6 Current employment of respondents 40
4.7 Annual household income of respondents 41
4.8 The ability to manage respondents own finances 42
4.9 Current financial investment of the respondents 43
4.10 Major savings objectives of the respondents 45
4.11 Monthly savings percentage of the respondents 46
4.12 Loan repayment percentage of respondents 47
4.13 Respondents regular income savings pattern 48
4.14 Respondents Spending pattern 49
4.15 Usage of generally planned savings of the 50
respondents
4.16 Provision for emergency fund to meet exigencies 51
4.17 Utilization of income tax benefits 52
4.18 Income tax filing of the respondents 53
4.19 Income tax planning for upcoming years 54
4.20 Respondents regular contribution to retirement 55
account
4.21 Planned retirement age of the respondents 56
4.22 Pension amount after retirement of the respondents 57
4.23 Familiarity of investment markets by respondents 58
 4.24 Level of risk tolerance 59
4.25 Respondents preferred investment instruments 60
4.26 Primary need for life insurance policy 61
4.27 Respondents objective of life insurance policy 63
4.28 Reason for medical insurance 64

CHAPTER - 1

INTRODUCTION
BACKGROUND OF THE STUDY

The project titled ―A study on financial planning for salaried employees and
strategies for tax savings‖ focuses on the financial planning may be a process that
an individual goes through to seek out where they're now (financially), determine
where they need to be within the future, and what they're getting to do to urge there.
Financial Planning provides direction and aiming to take financial decisions. It
allows understanding of how each financial decision a private makes affects other
areas of their finances. For example, buying a specific investment product might
help to pay off mortgage faster or it'd delay the retirement significantly. By viewing
each financial decision as a neighborhood of the entire, one can consider its short
and long- term effects on their life goals.

Financial products which act as an investment avenue and provide the

required financial security to the investors based on the risk-return profile of the
financial products. In the past, traditional financial products were offered in India by
banks (deposit account, credit account), life insurance Corporation (LIC), and postal
department (recurring deposit, National Saving Certificate, Kisan Vikas Patra).
However, in recent years with the arrival of liberalization of monetary services
industry, diverse financial products are introduced like mutual funds, shares,
derivatives, life and non-life insurance schemes (Unit Linked Investment Plans
(ULIPs), pension plans, children education plans, etc.). Investment preference differs
from person to person, as every individual behaves differently while investing.
Investment behavior of an individual is guided by his own set of circumstances.
With an expectation of generating high returns over a period of your time and certain
levels of risk, individuals invest in several financial products. Today, variety of
investment avenues are available to a private but a private , after a radical market
 study and consistent with his needs and circumstances, has got to decide
which investment avenue has to be chosen. The present study is an effort to
research the

investment preferences of salaried individuals towards various financial products

supported demographic factors.

Fig 1.1: Need for Financial Plan

.1.INVESTMENT OPTIONS OF SALARIED PERSONS IN INDIA

Salaried individuals have different investment requirement than self-
employed or other professionals. They have fixed monthly cash inflow to satisfy
their expenses and but various life goals. While most of the salaried individuals are
covered under post-retirement security within the sort of employees provident fund or
other mandatory retirement schemes, the corpus generated are often inadequate to
meet post-retirement schemes.
1.1Equity
Equity is one of the most risky areas. But, at an equivalent time this is often
also an area where an investor can earn high rates of returns which will push up the
 returns of the whole portfolio. There is a requirement for the investor to
separate the

speculation from the investment. The former may be a process where the cash is
invested stupidly much about how and why the cash is being put there. On the
opposite hand, investment involves an extended term approach which will absorb
the funds for an extended period of your time. Investment in equities are often made
directly by the acquisition of shares from the market or it are often done through the
open-end fund route, whereby the investor buys the mutual fund units and the fund
in turn buys equity shares for its portfolio. There are various benefits also as risks
related to both these routes and it's up to the individual to form up his mind.
1.1.1.2 Debt

Debt may be a route that the majority people will know and have the required
experience of. There is a good range of debt instruments that are present from bank
fixed deposits to company fixed deposits and even bonds and debentures whose
issues are available the market. Debt is straightforward because the investor will
earn at a hard and fast percentage of the investment, which can then be returned to
the investor at the time of maturity or redemption of the investment. The good part
for the investor is that the danger within the investment is extremely less. But on the
opposite hand, the returns are limited to the interest as a percentage of the entire
amount. This is a tradeoff that the investor takes for the purpose of the investment.
1.1.1.3 Mutual Fund

This is an emerging area for investment and there's an outsized sort of

schemes within the market to suit the wants of an outsized number of individuals.
The features of those schemes will determine the type of risk that the investment
carried but overall the position remains an equivalent which is that for equity
oriented funds the risk is greater but at the same time the chances of a return are
also quite high. If there is a debt scheme in which the investor is putting the money,
then the requirement is such that the returns expectations will have to be lowered
because this is a low risk, low return investment. At an equivalent time, here is that
the expectation that quite few new sorts of funds are going to be launched within
the coming months within the Indian markets and this will provide another element
or sector wherein the investor can invest their funds. The term's meaning depends
considerably on the context. In finance, generally, you'll consider equity as
ownership in any asset in any case debts related to that asset are paid off. For
example, a car or house with no outstanding debt is taken into account the owner's
equity because he or she will readily sell the item for cash. Stocks are equity
because they represent ownership during a company.
1.1.1.4 FI Bonds

The fixed income assets include internally managed investment grade

securities and externally managed high yield securities.
1.1.1.5 Corporate Debenture
Corporate debentures are normally backed by the reputation and general
creditworthiness of the issuing company. Corporations occasionally issue this sort
of debt securities so as to boost capital and like bonds; the debentures too, are
documented as indentures. It is a kind of certificate of indebtedness that's not
covered by the safety of physical assets or collateral. Debentures are a way of
raising credit for the corporate and although the cash thus raised is considered a
neighborhood of the company's capital structure, it's not part of the share capital.
1.1.1.6 Company Fixed Deposit

Company fixed deposit is the deposit placed by investors with companies for
a fixed term carrying a prescribed rate of interest. Used as a measure to create up
capital for the corporate, these deposits offer high rates (as compared to bank FDs)
of interest on investments. Company FDs are primarily meant for conservative
investors who don't wish to require the danger of vagaries of the stock exchange.
But experts say the due diligence that an investor should undertake is analogous
thereto before buying shares. Getting lured by the high rate of interest alone isn't
advisable.
1.1.1.7 Fixed Deposits in Bank

Fixed Deposits with Banks also are mentioned as term deposits. Minimum
investment period for bank FDs is 30 days. Fixed Deposits in banks are for those
investors, who have low risk appetite. Bank FDs is probably going to be less than
market fund returns. Deposits in banks are very safe due to the regulations of RBI
and therefore the guarantee provided by the deposit insurance corporation. The rate

of interest on fixed deposits varies with term of the deposits Bank deposits enjoy
exceptionally high liquidity. Loans can raise against bank deposits.
1.8Post Office Savings

Post Office Monthly Income Scheme may be a low risk saving instrument,
which may be availed through any Post Office. It provides an interest rate of 8% per
annum, which is paid monthly. Minimum amount, which can be invested, is Rs.
1,000/- and extra investment in multiples of Rs. 1,000/-. Maximum amount is Rs.
3,00,000/- (if Single) or Rs. 6,00,000/-(if held jointly) during a year. It has a maturity
period of 6 years. A bonus of 10% is paid at the time of maturity. Premature
withdrawal is permitted if deposit is quite one year old. A deduction of 5% is levied
from the principal amount if withdrawn prematurely. The 10% bonus is also denied.
Deposits can be made in multiple of Rs.50. Deposits can be pledged. The rate of
interest on deposits is slightly above banks. The interest is calculated half yearly
and paid yearly
1.1.1.9 Life Insurance Policy

Insurance companies offer many investment schemes to investors. These

schemes promote saving and additionally provide insurance cover. L1C is that the
largest life assurance company in India. Some of its schemes include life policies,
●Convertible whole life assurance policy,
●Endowment assurance policy,
●Jeevan Saathi,
●Money back policy
●Unit linked plan
●Term assurance
●Immediate annuity

Insurance policies, while catering to the danger compensation to be faced within the
future by investor, even have the advantage of earning an inexpensive interest on
their investment insurance premiums.
1.1.1.10 Public Provident Fund

A long term savings instrument with a maturity of 15 years but no of

contributions annually has to be 16 and interest payable at 8% per annum

compounded annually. The subscriber to a PPF has got to make minimum of

deposits of Rs.100 Annually. A PPF account are often opened through a nationalized
bank at any time during the year and is open during the year for depositing money.
Tax benefits are often availed for the quantity invested and interest accrued is tax-
free. A withdrawal is permissible per annum from the seventh fiscal year of the date
of opening of the account and therefore the amount of withdrawal are going to be
limited to 50% of the balance at credit at the top of the 4th year immediately
preceding the year during which the quantity is withdrawn or at the top of the
preceding year whichever is lower the quantity of loan if any. The subscriber to the
PPF is eligible to take loan from the third year sixth year after opening of account
and interest for that loan is 1 % higher than PPF ACC interest rate.
1.1.1.11 Real Estate

Investment in land also made when the expected returns are very attractive.
Buying property is an equally strenuous investment decisions. Real estate
investment is often linked with the future development plans of the location. At
present investment in real assets is booming there are various investment source are
available for investment which are directly or indirectly investing land. In addition to
the present, the more affluent investors are likely to have an interest in other sort of
land, like commercial property, agricultural land, semi urban land, and resorts.
1.1.1.12 Gold/Silver/Others

The bullion offers investment opportunity in the form of gold, silver, art
objects (paintings ,antiques), precious stones and other metals (precious objects),
specific categories of metals are traded in the metal exchange. The bullion market
presents a chance for an investor by offering returns and therefore the end value of
future. It has been absurd that on several occasions, when stock exchange failed,
the gold market provided a return on investments. Fixed Deposits with Banks are
also referred to as term deposits. Minimum investment period for bank FDs is 30
days. Fixed Deposits in banks are for those investors, who have low risk appetite.
Bank FDs is likely to be lower than money market fund returns. Deposits in banks
are very safe because of the regulations of RBI and the guarantee provided by the

deposit insurance corporation. The interest rate on fixed deposits varies with term of
the deposits Bank deposits enjoy exceptionally high liquidity. Loans can raise
against bank deposits.

1.1.2.SPECIAL CONSIDERATIONS OF A FINANCIAL PLAN

● Retirement strategy: No matter what your priorities are, the plan

 should include a strategy for accumulating the retirement income
you need.
● Comprehensive risk management plan: That includes a review of
life and disability insurance, personal liability coverage, property
and casualty coverage, and catastrophic coverage.
● Long-term investment plan: A customized plan based on specific
investment objectives and a personal risk tolerance profile.
● Tax reduction strategy: A strategy for minimizing taxes on personal
income to the extent allowed by the tax code.
●Estate plan: Arrangements for the benefit and protection of your heirs.

Fig 1.2: Investment Options for Individuals

1.2. INDUSTRY PROFILE

India has a diversified financial sector undergoing rapid expansion, both in

terms of strong growth of existing financial services firms and new entities entering
the market. The sector comprises commercial banks, insurance companies, non-
banking financial companies, co-operatives, pension funds, mutual funds and other
smaller financial entities. The banking regulator has allowed new entities such as
payment banks to be created recently, thereby adding to the type of entities
operating in the sector. However, financial sector in India is predominantly a banking
 sector with commercial banks accounting for more than 64% of the total
assets held by the financial system.
The Government of India has introduced several reforms to liberalize, regulate
and enhance this industry. The Government and Reserve Bank of India (RBI) have
taken various measures to facilitate easy access to finance for Micro, Small and
Medium Enterprises (MSMEs). These measures include launching Credit Guarantee
Fund Scheme for MSMEs, issuing guideline to banks regarding collateral
requirements and setting up a Micro Units Development and Refinance Agency
(MUDRA). With a combined push by Government and private sector, India is
undoubtedly one of the world's most vibrant capital markets. In 2017, a new portal
named 'Udyami Mitra' was launched by Small Industries Development Bank of India
(SIDBI) with an aim to improve credit availability to MSMEs in the country. India has
scored a perfect 10 in protecting shareholders' rights on the back of reforms
implemented by Securities and Exchange Board of India (SEBI).

.1.Market Size

As of November 2020, Assets Under Management (AUM) managed by the

mutual fund industry stood at Rs. 30 lakh crore (US$ 407.39 billion). Inflow in India's
mutual fund schemes via the Systematic Investment Plan (SIP) route reached Rs.
82,453 crore (US$ 11.70 billion) in 2019. Equity mutual funds registered a net inflow
of Rs. 8.04 trillion (US$ 114.06 billion) by end of December 2019.
Another crucial component of India‘s financial industry is the insurance
industry. Insurance industry has been expanding at a fast pace. The total first year

premium of life insurance companies reached Rs. 2.59 lakh crore (US$ 36.73 billion)
in FY20.
Furthermore, India‘s leading bourse, Bombay Stock Exchange (BSE), will set up a
joint venture with Ebix Inc to build a robust insurance distribution network in the
country through a new distribution exchange platform.

.2.Investments/Developments

● In November 2020, LIC took initiatives to facilitate quicker proposal

completion by launching a digital application – ANANDA.
 ● In November 2020, Paytm reported 2x growth in digital gold
transactions in the last six months. New customers have increased
50% since the beginning of this financial year and the average order
value has increased by 60%.
● In November 2020, the Reserve Bank of India (RBI) announced
establishment of its Innovation Hub. In order to encourage access to
financial services and goods and foster financial inclusion, this
initiative would create an ecosystem. The Innovation Hub of the
Reserve Bank (RBIH) is intended to promote innovation across the
financial sector by leveraging technology and creating a conducive
environment for innovation.
● VC investments grew to US$ 3.6 billion in July-September 2020 from
US$ 1.5 billion in the previous quarter, powered by the mega deals,
which included the US$ 1.3 billion raised by the online retailer—Flipkart.
● On November 6, 2020, WhatsApp started its UPI payment services in
India on receiving the National Payments Corporation of India (NPCI)
approval to
‗Go Live‘ on UPI in a graded manner.

● In October 2020, Unified Payments Interface (UPI) recorded 2.07 billion

transactions worth Rs. 3.86 lakh crore (US$ 52.10 billion).

1.2.3.Government Initiatives

● In November 2020, the Union Cabinet approved the government's

equity infusion plan for Rs. 6,000 crores (US$ 814.54 million) in the
NIIF Debt

Platform funded by the National Investment and Infrastructure Fund (NIIF)

consisting of Aseem Infrastructure Finance Limited (AIFL) and NIIF
Infrastructure Finance Limited (NIIF) (NIIF-IFL).
● In November 2020, two MoUs were signed—one between India
International Exchange (India INX) and Luxembourg Stock Exchange
and another between State Bank of India and Luxembourg Stock
Exchange for cooperation in financial services, ESG (environmental,
social and governance) and green finance in the local market.
 ● On November 11, 2020, The Cabinet Committee on Economic Affairs
approved continuation and revamping of the scheme for financial
support to public-private partnerships (PPPs) in ‗Infrastructure
Viability Gap Funding (VGF) Scheme‘ until 2024-25 with a total outlay
of Rs. 8,100 crore (US$ 1.08 billion).

.4.Road Ahead

● India is expected to be the fourth largest private wealth market globally

by 2028.
● India is today one of the most vibrant global economies on the back of
robust banking and insurance sectors. The relaxation of foreign
investment rules has received a positive response from the insurance
sector, with many companies announcing plans to increase their
stakes in joint ventures with Indian companies. Over the coming
quarters, there could be a series of joint venture deals between global
insurance giants and local players.
● The Association of Mutual Funds in India (AMFI) is targeting nearly
five-fold growth in AUM to Rs. 95 lakh crore (US$ 1.47 trillion) and
more than three times growth in investor accounts to 130 million by
2025.
● India's mobile wallet industry is estimated to grow at a Compound
Annual Growth Rate (CAGR) of 150% to reach US$ 4.4 billion by 2022,
while mobile wallet transactions will touch Rs. 32 trillion (USD$ 492.6
billion) during the same period.

1.3. STATEMENT OF THE PROBLEM

Financial products act as an investment avenue and supply the specified

financial security to the investors supported the risk-return profile of the financial
products. There are several investment avenues available for the individuals to
invest, Investment preference differs from person to person, as every individual
behaves differently while investing. Investment behavior of an individual is guided
by his own set of circumstances. With an expectation of generating high returns over
a period of your time and certain levels of risk, individuals invest in several financial
 products. The present study is an effort to research the investment
preferences of salaried individuals towards financial products supported various
demographic factors. The study reveals the association of financial planning and
investment behavior of the individuals.

1.4. SCOPE OF STUDY

Salaried employees have fix flow of income & their investments patterns are
also different. In connection with this researcher will try to find out investment
behavior of investors in Kollegal region. It will helpful to know the investment
preferences of investors. The study also will throw a light-weight on the notice of the
investments avenues available in India. Investment companies will get idea about
investment preference towards various investments alternative. Build suitable
investment products which will increase growth of the companies. The research
paper will become the helping hand to the research scholars as well as students for
their further studies their respective area.

1.5. OBJECTIVES OF THE STUDY

.1.PRIMARY OBJECTIVE

● A study on financial planning for salaried employees with respect to

savings, income tax, retirement and investment.

.2.SECONDARY OBJECTIVES

●To identify the saving pattern of the salaried employees.

● To study the investment preferences of salaried individuals towards

various financial instruments.
●To analyze the tax planning measures by salaried individual.

● To determine the association between demographic variables and

investment preference of salaried individuals towards financial
instruments.
1.6. LIMITATIONS OF THE STUDY

● Many statistical tests and formulas are required to calculate and are
also difficult to provide the approximate values.
● This study is done with reference in Kollegal, with the sample size of
150 to 200 and therefore dependability of the project is not certain.
● Every individual‘s point of view differs from one another which are
tedious to compile.
● The investment preference and market risk varies for every investment
options so the analysis is out of the box.
● Since the sample size is not large, hence it is not the true
representation of the universe.

CHAPTER – 2 REVIEW

OF LITERATURE
2.1 REVIEW OF LITERATURE

Geetha and Ramesh (2011) state that there are a lot of investment choices and one
must select the most appropriate one. The person dealing with the planning must
know all the various investment choices and how these can be chosen for the
purpose of attaining the overall objectives. The details of creating the investment
alongside the varied ways during which the investment has got to be maintained
and managed. The sample size of area is analyzed by tools selected for this study
was 2 hundred and ten respondents were randomly selected from the town. Data
were analyzed using descriptive statistics and chi-square technique.

Bhushan and Medury (2011) identified that Financial literacy is that the ability to
form informed judgments and to require effective decisions regarding the utilization
and management of cash. Financial literacy enables individuals to enhance their
overall well-being. Research has shown that levels of monetary literacy worldwide
are unacceptably low. Findings of the study suggest that overall financial literacy
level of respondents isn't very high. Financial literacy level gets suffering from
gender, education, income, nature of employment and place of labor whereas it
doesn't get suffering from age and geographical area. Findings of this study will
help policy makers and regulators to plan appropriate strategies so as to extend the
extent of monetary literacy amongst the population.

Pandiyan and Aranganathan (2012) studied the status of attitude of the salaried
people on savings / investment is evaluated in this article. From the correlational
analysis of the opinion data, seven underlying dimensions of savings / investments,
viz., ―Secured Life‖, ―Avoiding investments privately parties / Companies‖, ―Lack
of guidelines to children about saving‖, ―Tough Task but good for future‖, ―Creation
of Awareness about saving habit by Government‖, ―Savings Requires Experience‖
and
―Wrong investment decision by many‖. From descriptive analysis, it is found that the
respondents have high the status of attitude about all aspects except ―Tough Task

but good for future‖ are high. Regarding ―Tough Task but good for future‖, the
respondents are found with moderate attitude.

Kaushal and Kinjal (2012) made a study on the effects of investor occupation and
education on choice of investment: an empirical study. This paper will help to
understand the investors facet before investing in any of the investment tools and
thus to scrutinize the important aspects for the investors before investing that
further helped in analyzing the relation between the features of the products and the
investors‘ requirements. The present study is purely based on primary data which
have been collected through structured questionnaire. With the help of this study it
was found that majority of investors prefer bank deposit because of less risk.
Investors who have less education and income compare to other, they also prefer
bank deposit, post office deposit and insurance because of easy to understand and
less risk.

Swasdpeera and Pandey (2012) study identifies factors that influence the saving
behavior of salaried individuals in Thailand. The results of the univariate and
multivariate analyses show that income, age, marital status, number of children and
educational level have a positive influence on the individuals‘ average saving. The
study indicates that those individuals who do not save and are not willing to save
have a more indifferent attitude towards the factors of willingness to save than the
individuals who save or are willing to save. The proposed model of influence on
saving suggests that an individual will take a series of actions on saving if he/she
has a surplus portion of income, a concern for future spending and a trusted saving
product.

Savita and Lokesh (2013) identified that tax planning is an essential part of our
financial planning. Efficient tax planning enables us to reduce our tax liability to the
minimum. This is done by legitimately taking advantage of all tax exemptions,
deductions rebates and allowances while ensuring that your investments are in line
with their long-term goals. The purpose of the study is to find out the most suitable
and popular tax saving instrument used to save tax and also to examine the amount
saved by using that instrument. Over all findings reveals that the most adopted tax

saving instrument is Life Insurance policy, which got the first rank in this study and
the second most adopted tax saving instrument is Provident Fund.

Bhushan and Medury (2013) made a study on determining tax literacy of salaried
individuals. In personal financial planning, tax management plays a very important
role. An individual should have thorough knowledge of various aspects of taxes and
tax policies, which would help him to understand how much he can save even after
paying taxes. Those people who have not taken any formal course on taxation finds
it difficult to understand and comprehend the issues related to determination of tax
liability, tax filling and tax saving. The results suggest that level of tax literacy varies
significantly among respondents. Also tax literacy level gets affected by gender, age,
education, income, nature of employment and place of work whereas it does not get
affected by geographic region. Findings of this paper suggest that government
should adopt more aggressive approaches to educate taxpayers, thereby raising the
level of tax literacy among them.

Bhushan and Medury (2013) states that Gender differences in investment behavior
have been reported by various studies. Women are more conservative while
investing and are unwilling to take risk. Against this backdrop, the present study is
an attempt to analyze the gender differences in investment behavior among
employees. Survey method was adopted in this research study to collect information
from the respondents. Our results suggest that significant gender differences occur
in investment preferences for health insurance, fixed deposits and market
investments among employees.
Puneet Bhushan (2014) made a research on awareness level and investment
behavior of salaried individuals towards financial products. Diverse financial
products have been introduced these days in Indian market. Each of these financial
products offer a range of benefits and varying options with respect to interest rates,
exposure to risk, time period of the contract, fees etc. Most of the individuals are not
able to take advantage of higher returns offered by these products due to lack of
financial awareness. This paper examines the awareness level and investment
behavior of salaried individuals towards financial products. Results of the study

suggest that respondents are quite aware about traditional and safe financial
products whereas awareness level of new age financial products among the
population is low. Also majority of the respondents park their money in traditional
and safe investment avenues.

Puneet Bhushan (2014) state that the capability of an individual to deal effectively
with financial matters is known as financial capability. Financial capability is a
combination of knowledge, attitudes, skills and behavior necessary to manage
personal finances and to choose and make appropriate use of financial products.
Financial capability enables individuals to process financial information and make
informed decisions about personal finance. Financial capability is directly related to
the well-being of individuals. An attempt has been made through this study to
measure the financial capability of salaried individuals of Himachal Pradesh. For
measuring financial capability, the comprehensive approach is used by including all
the probable dimensions of financial capability i.e. financial attitudes, financial
behavior and financial knowledge.

Sasmita and Manit (2014) identified that the construct of risk tolerance or an
individual‘s attitude towards accepting risk has implications for financial service
providers as well as investors. The financial service providers should be aware of the
attitude and needs of their clients, including their investment objectives, investment
experience and desired financial risk tolerance.

Umamaheswari and Ashok kumar (2014) state that the financial facet of the world
at all times exhibits an uncanny proportionate impact of the public investment
choices, their awareness about the investment needs, their expectation of returns on
their investments etc. Perhaps, predicting the progress of the commercial world
would be indispensable without an appropriate comprehension of the investment
policies of the prime part of the society called salaried middle class. This paper
intends to serve a bridge to the need of a holistic comprehension of the financial
aspirations of the salaried middle-class investors with that of their ambitious
longing for the percentage of investment returns.

Ciemleja and Lace et al (2014) made a study on financial literacy of individuals, the
factors contributing to the level of financial knowledge, as well as tools for
improving financial competence are frequently discussed topics in the academic
papers. Most attention is paid to the measuring issues, because this is an initial step
of developing a national strategy to enhance citizens‘ financial literacy level.
Measuring process requires a clear understanding of the concept, underlying
components and an appropriate evaluation instrument. A set of 12 questions on
financial matters was developed to detect perceived importance and complexity of
financial literacy components, as well as to get financial literacy self-assessment
scores. Data was processed by means of SPSS 20.0, applying such methods, as
analysis of means, analysis of frequencies and independent samples t-test.
Received results assist to precise the content and wording of questions to be
included into the questionnaire for evaluation financial literacy level of Latvian
citizens.

Puneet Bhushan (2014) state that financial literacy of an individual‘s is their level of
understanding of financial matters which enables them to process financial
information and make informed decisions about personal finance. It is difficult for a
common man to understand the risk associated with the new age financial products.
In order to understand risk and return associated with these products, a minimum
level of financial literacy is a must. An attempt has been made through this paper to
examine the relationship between financial literacy of salaried individuals and their
awareness regarding financial products. Also the relationship between financial
literacy and investment behavior of salaried individuals is studied. The results of the
study suggests that financial literacy level of individuals affects the awareness as
well as investment preferences of salaried individuals towards financial products.

Saugat Das & Ritika Jain (2014) identified that the behavioral aspect of investors
plays an important role in financial decision making which has attracted a huge
financial literature. Among other objectives, demographic variables are one of the
important objectives which influence financial decision making of investors. This
paper focuses on the relationship between the four demographic variables i.e., age,
gender, education and occupation with the four most important objectives of

investment such as risk, return, retirement and tax which influences the buying
behavior of the investors. The study emphasizes the fact that demographic
variables indeed play a role on the mindset of the investor community which is
driven by age and educational qualification.

Bhushan, and Medury (2014) state that financial literacy is the ability to make
informed judgments and to take effective decisions regarding the use and
management of money. Past research on financial literacy had indicated that levels
of financial literacy are low across the world. Various initiatives such as financial
education programs are being taken by governments, organizations and agencies to
improve the level of financial literacy among the population. The results of the study
suggest that it is not only financial knowledge which shapes overall financial literacy
of an individual but financial attitudes and financial behavior of the individual has a
considerable effect on overall financial literacy of an individual.

Sonali and Kalpana (2014) state that investment is an activity that is engaged in by
people who have savings i.e. investments are made from savings, or in other words
people invest their savings. A variety of investment options are available such as
bank, Gold, Real estate, post services, mutual funds & so on. Investors are investing
their money with the different objectives such as profit, security, appreciation,
Income stability. The study is based on personal interviews with salaried peoples,
using a structured questionnaire. The data has been analyzed using percentage, chi-
square test, and Person Correlation Coefficient with the help of statistical software.
The researcher has analyzed that salaried employees consider the safety as well as
good return on investment on regular basis. Respondents are aware about the
investment avenues available in India except female investors.

Deepak and Navdeep (2015) objective of the study was to determine the relationship
between the savings and investments pattern among the salaried class people of
Chandigarh (India). It was found from the analysis there is relationship between
Annual Savings and Age, Income, Sector wise Employment, Education of people at
Chandigarh. Analysis has been done through One Way ANOVA. It was

propounded here that the most preferred investment options are LIC and bank
deposits and most of the factors influencing investment decisions were high returns,
tax benefit and safety.

Velmurugan and Selvam et al (2015) state that the economic liberalization and
globalization have brought a fervent environment for the common and small
investors who are willing to participate in the various investment avenues available
in India. There are large number of small investors, who have the ability to save and
make an investment in share market, gold, real estate, insurance and post office. In
recent years, numerous researches have been conducted on investors‘ perception
towards various investment from various perspectives. The Indian investment
industry is witnessing a rapid growth because of infrastructural development,
manufacturing and service sector, in personal financial assets and rise in foreign
participation. The present empirical study is an attempt to examine the investors‘
perception towards various investment avenues in Vellore city, Tamil Nadu, India.

Selvakumar and Manicka Mahesh (2015) says that Investment of hard-earned

money is a crucial activity of every human being. Investment is the commitment of
funds which have been saved from current consumption with the hope that some
benefits will be received in future. On the other hand, the savings provide capital to
industry, economic development to the country. In developing country like India,
household savings is the major source of capital for economic activities. The study
helps to understand the knowledge and behavior of households, the major provider
of funds to economic activities of the country. Hence, a study of investment behavior
of households has made with the objective of understanding the level of knowledge
of households about investment.

Thulasipriya .B (2015) state that India needs very high rate of investments to make a
bound forward in efforts of attaining high level of growth. Since the beginning of
planning, the prominence was on investments the primary instruments of economic
growth and increase in national income. Instead of studying the complete range of
investors, it is focusing only one segment called salaried Government employees. A
variety of statistical tools are employed to analyze the data like Friedman Rank Test,

Chi-square, etc., to identify the right relationship among the factors related with
investment. Finally it is concluded that salaried group nevertheless of age and
annual Income, besides their occupation and marital status they used to prefer the
investment option which will provide the long term benefit and highly secured cum
profitable avenues.

Dey Sanjeeb Kumar (2015) state that tax is a compulsory extraction and major
source of revenue for the government. Being a citizen of India, paying tax is one of
our constitutional duties in return of fundamental rights. But paying tax, is always a
painful task as it directly impacts on the residual income of the taxpayers. Tax can
be reduced either by evasion or avoidance of tax planning. Tax evasion is illegal, tax
avoidance is not a crime but tax planning is ethical and legal. With this background,
this paper is an attempt to analyze the tax planning measures taken by the salaried
persons in Odisha. It is found that more than 60% of the lecturers do not have sound
ideas about various provisions of income tax. Tax planning measures adopted by
different class of lecturers are almost uniform. Class of lecturers, gender, experience
and length of service has no significant relationship with the level of awareness
about the tax planning measures.

Ramanathan and Meenakshisundaram (2015) says that financial Investments are

the commitments which are made with any financial and non-financial instruments
hoping for a better and profitable return in the future for a specific objective. The
financial and non-financial products act as an avenue for investment and provide
the security to the respondents based on the risk-return profile of the products. The
data were collected through a structured questionnaire and analyzed using
percentage, chi-square test and Karl Pearson‘s correlation coefficient. The results of
research indicate that majority of the respondents are saving money for their safety
and the results of the study would be of a guide for personal finance and investment

Sunita Totala (2016) identified that salaried persons receive a definite amount out of
which they are to spend for maintenance and provident for future with the help of
investment. Data analysis has been done based on percent analysis. The study
concludes that ten factors predominantly decide the individual investment patterns

and people differ on the basis of annual income, age, gender and profession while
investing.

Monika and Bhuvnender (2016) state that the financial surface of the globe at all
times reveals a weirdly balanced impact of the public investment preferences, their
understanding of the investment requirements, their anticipation of returns on their
investments etc. Perhaps forecasting the growth of the business world would be
crucial without an opposite comprehension of the investment behavior of the key
part of the society called salaried class. The major factors influencing the financial
investment behavior are demographic factors (like age, income, qualification, gender,
etc.) and socio-economic factors (like family income, tax benefits, the safety of fund,
risk inclination, return on investment). This study aims to serve a channel to the
need for a comprehension of the financial objectives of the salaried class investors
with that of their determined desire for the investment returns.

Nalini and Alamelu et al (2016) says that financial literacy helps the persons to
understand the information regarding financial aspects and make well-versed
decisions when investing their money. The key objective is to explore the literacy
level of individual in investment decisions and to suggest sustainable measures of
increasing the awareness level in urban areas.

Bala Swamy and Priya (2016) made a study on financial literacy of an individual‘s is
their level of understanding of financial matters which enables them to process
financial information and make informed decisions about personal finance. In order
to understand risk and return associated with these products, a minimum level of
financial literacy is a must. Financially literate individuals can make effective use of
these financial products and services by evaluating associated risks and returns and
finally choosing those products which are best suited to them. The results of the
study suggest that financial literacy level of individuals affects the awareness as
well as investment preferences of salaried individuals towards financial products.

Nishu and Arpita (2016) identified that mutual fund is becoming a very popular
investment avenue among the financial professional as they are having Knowledge
about mutual fund but due to lack of time and also wants better return than fixed
income securities that make their inclination towards mutual fund. This paper is
going to study the satisfaction level of mutual fund investors working in financial
institutions and how are they inferring the risk minimization through Mutual Fund
(MF).

Gajendra Naidu .J (2017) state that due to rapid growth in Indian economy over the
last decade and expansion of financial markets through liberalization, privatization
and globalization have given a way to overabundance of financial products in
banking, investment and loan products. Low level of financial literacy prevents
individuals from making right choices regarding financial decisions. The objective of
the study is to study the level of financial literacy in India by using literature-based
analysis. Secondary data collected from various websites, journals, research papers
and articles. It is found that financial literacy in India is very low and necessitates
exertion to mend level of literacy.

Sangeeta Gupta (2017) identified that financial literacy comprises of skills and
knowledge that enables the individual to understand the principles of finance that an
individual requires to know to make informed financial choices and decisions and
also the financial products that influence the financial well-being of an individual.
Invariably, bare minimum financial literacy level is must for an individual to
understand risk and return related to financial products. The current study attempted
to examine the association between financial literacy of salaried individuals of Delhi
and their awareness index related to various products of finance. The results
revealed that salaried individuals‘ level of financial literacy of individuals have effect
on their financial products awareness as well as their investment preference. It is
recommended to bridge the gap of research studies by including all sections of the
society.

Dam and Leena et al (2017) says that financial planning is an art with a touch of
science to manage one‘s own money having the propensity to accumulate for future
and simultaneously meet with ease the daily financial requirement. Due to
diversification of financial services sector individual investors have wide array of

products to invest. Individuals need to be financially literate in order to make realistic

financial plans and decide the best suited investment product where the returns beat
inflation and wealth accumulation is achieved. This study attempts to analyze the
relationship between age and income with financial planning. It also studies whether
age and income have a positive correlation with the choice of investment products.
Analysis show that majority of individuals have set financial goals. But they are
unaware of how to meet their future financial goals. Also investors are not correctly
aware of which product to invest in given their age and income bracket.

Susmitha and Asha (2018) says that this study aims focus on awareness and
preferences of working women. Women in India are now actively participating in all
activities such as education, politics, media, science and technology& becoming
financial independent. With a changing scenario, women has started actively
participating in investing their surplus money, though it all depends upon the various
parameters such as degree of their risk taking capability, influence of family
members and friends and the dare to get exposed to modern and innovative
investment avenues. The study is based on personal interviews with salaried women
employees using a structured questionnaire. The data has been analyzed using
percentage analysis and chi-square test. The researcher has analyzed that salaried
women employees consider the safety as well as high return on investment on
regular basis.

Assefa and Durga (2018) identified that the issue of financial literacy has ever
increasing its importance after the recent economic crisis and the call for enhanced
financial literacy amongst consumers is a global phenomenon, driven by the
growing complexity of financial markets, services and products. Chi-square test was
used to examine the relationship between financial literacy and investment
preference. The results of the study concluded that financial literacy level of
individuals is very low. These results highlight the need for financial education
programs focusing specifically on developing investment knowledge and skills to
facilitate informed investment decisions.

Suyog and Komal (2018) state that this research focuses on the need and
importance of retirement planning. There are considerable changes in the saving
and investment behavior of individuals in India over the last couple of years. The
awareness about retirement planning is must for every single individual. The
research paper highlights the behavior pattern of salaried individuals towards
retirement planning. To do so, paper seeks to evaluate awareness of130 working
individuals towards investment approach for retirement. The result of the survey will
test the awareness level and behavior towards investment pattern for retirement
planning

Geethu Gopi and Priyanka et al (2018) identified that investment is an activity

confined to specific financial aims of investors. It‘s the path through which smart
money are transferred from the surplus area to the deficit. The money is deposited
by the investor with the diverse intention such as appreciation, return and safety.
Convenient random sampling method is used for selecting the sample of 100
employees from ten shipping industries in Ernakulam. The collected information
was analyzed by using different statistical tools like T test, Chi Square analysis,
correlation analysis and percentage analysis .The major findings of the study
suggested most of the employee‘s savings are directed to their personal expenses
such as child‘s education, marriage etc. They are tending to risk adverse investors.

Sivaramakrishnan and Kumarasamy (2018) made a research on financial smartness

is a type of business intelligence constituted of the knowledge and skills gained
from understanding finance and accounting principles in the business world. The
Financial smartness and behavior of working employees is analyzed using the
statistical tools such as frequency table, Chi-Square distribution, multiple response
analysis and Factor analysis. Financial literacy goes hand-in-hand with financial
intelligence. It involves the proficiency of financial principles and concepts such as
financial planning, managing debt, profitable savings techniques and the time value
of money.

Venkataraman and Thilak (2018) state that financial literacy will enable better
decision making and efficient management of funds. The knowledge of basic

foundations of time value can result in building a robust portfolio. The recent
initiatives by the government on financial inclusion aids in promoting faster access
to transfer benefits. The RBI on the other hand, had initiated various financial literacy
programs to have significant inclusion. The key to successful inclusion is financial
literacy. The tools used for the analysis was confirmatory factor analysis and
structural equation modeling. The factors identified were financial attitude,
behavioral factors, financial knowledge and influence and among the factors
financial knowledge and influence were observed to predict financial literacy

Anand Kumar Shrivastava (2018) The objective of the research is to study the
investment behavior of government employees towards different financial products
available in the market so here 50 government employees were chosen as
respondents in the research. It found that most of the peoples are still investing into
tradition investment avenues like bank deposits, post office etc. because either they
are unaware of other financial products or they don‘t want to take enough risk in
their investment that‘s why they are not much satisfactory with their current
investment.

Sanket and Jagdeesh et al (2018) state that Investment is a type of activity that is
engaged in by the people who have to do savings i.e. investments are made from
their savings, or in other words it is the people invest their savings. The researcher
has analyzed and found that salaried employees consider the safety as well as good
return on investment that is invested on regular basis. Respondents are much more
aware about the different investment avenues available in India except female
investors.

Avni Patel (2018) identifies that financial literacy is all about how well the people
understand basic concepts related to finance. Basic understanding of financial
concepts is defined as financial literacy of the person. To achieve objective of
financial inclusion, people must be financially literate first. So to observe the
financial literacy of the respondents of Gujarat, particular study is undertaken. Study
is descriptive in nature and 600 samples from four major cities of Gujarat has been
selected for the same. Scope of the study is confined to salaried employees of

Govt., Public and Private sectors. To assess the financial literacy respondents were
asked eight questions which pertains to basic and advanced financial literacy. Study
reveals that respondents of Gujarat possess fair financial literacy

Nooka Raju (2018) state that the family unit with the available savings plan achieve
various goals which they come across during their different stages of life. With the
available sources of information on various investment avenues, the savings will be
changed into investment considering the risk, return and other factors. The study
mainly concentrates in knowing perception of risk level on various investment
avenues by the employees at different stages of life. The major findings of the study
are that majority of the employees at all the stages of life has less perception on the
level of risk on various investment avenues.

Renu Isidore and Christie (2019) says that the purpose of this paper is to test the
relationship between the annual income earned by the investors and eight behavioral
biases exhibited by the investors such as mental accounting, anchoring, gambler‘s
fallacy, availability, loss aversion, regret aversion, representativeness and
overconfidence.

Zankhana and Ronikadevi (2019) aim of this research is to analyze awareness,

perception & behavior regarding different investment avenues available for salaried
people and to study various demographic variables and pattern of investment. Data
were analyzed using descriptive statistics and chi-square technique was applied to
demographic factors and motives of savings. For analysis purpose SPSS software
is used. The results show that bank deposit and insurance policies still remains the
most preferred investment avenues. Salaried people‘s age and their motives of
savings are dependent on each other.

Meenakshisundaram and Ramanathan (2020) state that decisions towards

investment are based on investor‘s mind set rather than rational decision making.
The main objective of this research study is to identify the factors that influence the
investment decisions of the women employees working in banks. Factors like
Investor‘s Self-confidence, Investment Prudence and Investment Planning &

Annoying Planning were identified for the investment decision of respondents.

Further, Friends / Colleagues and Family members were found to be the motivational
factors for influencing the decision making process by the investors.

Neha Agarwal (2020) state that tax planning is an essential part of our financial
planning. The main purpose of the study is to find out regarding the awareness and
alternatives of the tax planning. Tax planning does not mean to not pay the tax but
in actual tax planning means paying a tax when individual crosses certain limit. Also
researcher has study the concept of tax planning in detail. It also creates wealth in
the hand of individual assessee in the form of good return. Individual assessee
requires a full understanding of tax rules. Tax planning also helps to reduce the tax
liability of individual.

Siddhaarth and Vilas (2020) state that ―This is too difficult for a mathematician. It
takes a philosopher. The hardest thing in the world to understand is the income tax.‖
–Albert Einstein Tax Management. Tax Management is an activity conducted by the
tax payer to reduce the tax liability and maximize the use of all available deductions,
allowances, exclusions, as per income tax act 1961. Study outcomes reveals that the
foremost adopted combination of tax saving instrument are PPF (Public Provident
Fund), which got the primary rank during this study and therefore the other are
Children education , LIC , Home Loan, NPS and other priority gives to Medical
Insurance, National saving certificates ,Fixed Deposits and ELSS.

Sekar and Uma (2020) says the object of the study the awareness level regarding
investments among the salaried class individuals of Neyveli NLC India Ltd. The
collected data were analyzed using simple percentage, chi-square test, and mean, co-
efficient of variation. The study evidenced that higher level of awareness was found
in the aspects of return on various schemes in life insurance, about bank fixed
deposits and various schemes in Life insurance. And lesser level of awareness was
identified in the aspects of requirements to make investments in stock market,
Knowledge about right time to invest or disinvest mutual funds and about net assets
value.

Priti and Purvi (2020) This paper aims to find the behavior of individual investors of
Ahmedabad district vis-a-vis available investment avenues in the Indian financial
markets. All the investors invest their surplus money in the above mentioned
avenues depending on their risk taking attitude. ―No pain, no gain‖ it is the golden
principle of investment management. Investors cannot avoid risks, but they can
minimize the risk by investing their money in various forms of safe investments so
that they can get a moderate profit. This study has led the researcher to conclude
that most of the investors of Ahmedabad district prefer bank deposits followed by
investments in gold and silver.

Vyshak and Joobi (2020) made a research on tax planning is the arrangement of
one's affairs in such a way that the tax planner can either reduce the tax incident in
its entirety or reduce it to the maximum extent that is permissible within the
 framework of taxation. Tax planning is really worthwhile because tax laws are
changing every year. Every year, new rules and regulations are included in tax
legislation. Tax planning enables investors to minimize their tax burden on
investment returns. The major findings of the study are that, majority of the age and
gender wise individual assesses agrees that tax awareness and tax planning lead to
wealth creation in their hands. They also believe that tax planning and awareness
leads to more savings, helps in building efficient portfolio and increases their
standard of living.

Bindabel and Hamza (2021) state that the main objective of the study was to find
out the relationship between saving and investment pattern and orientation towards
finance among the working women at the universities of Saudi Arabia. Orientation
towards finance (ORTOFIN) is one's attitude towards effectively managing financial
activities. This study states there is a significant positive relationship among the
saving and investment pattern and orientation towards finance among the working
women at the universities of Saudi Arabia. The finding of the study revealed
Financial Management Behavior act as a major contributor to the orientation
towards finance and the factor of personnel planning is another significant
contributor towards ORTOFIN.

CHAPTER – 3

RESEARCH METHODOLOGY
.1.RESEARCH DESIGN

A type of research design that is used for this research is Descriptive research.
The method in which the study undergoes is Questionnaire.

The descriptive research aims at obtaining complete and accurate

information for the study, the method adopted must be carefully planned. It uses
methods like quantitative analysis of secondary data, surveys, panels, observations,
interviews, questionnaires, etc.

3.2. SAMPLING TECHNIQUE

It is a method of selecting a suitable sample for the purpose of determining

 the characteristics of the whole population. There are two types of sampling
design Non-probability Sampling Techniques and Probability Sampling Techniques.
There are various sub techniques under each.

The best suitable sampling design is Non-Probability Sampling Technique, as

it involves non-random selection and not every individual has a chance of being
included. Convenience sampling is taken. It is used when we don‘t have any kind of
prior information about the target population. Convenience sampling (also known as
grab sampling, accidental sampling, or opportunity sampling) is a type of non-
probability sampling that involves the sample being drawn from that part of the
population that is close to hand. Members of the population are chosen based on
their relative ease of access. To sample peer groups, co-workers, software
employees, government employees are considered for convenience sampling.

3.3. SOURCES OF DATA

.1.PRIMARY DATA

The primary data consist of Questionnaire. A Questionnaire is basically a

written and authorized format containing all the questions which are relevant to the
required information. Therefore data can be collected through Questionnaires from
the required sample size

The questionnaire was distributed with close ended questions like multiple
choice questions, dichotomous questions (Yes or No) and close ended questions
(Demographic questions).

3.3.2.SECONDARY DATA

The secondary data is derived from Banking industry reports, online websites,
journals and books which are published on the project topic.

3.4. STRUCTURE OF QUESTIONNAIRE

There are two broad types of questions open ended or open questions, and
closed ended or closed questions. Open questions enable respondents to answer as
they wish. Closed questions provide respondents with a list of options from which
they choose.
 3.5. SAMPLE SIZE

A sample size is a component of population which is cautiously selected to

signify the population. The most commonly used approach for determining the size
of sample is the confidence interval approach covered under inferential statistics.
The sample size for the project 163 samples

.1.SAMPLE PLAN

It includes sampling design, sample location, sampling frame, sampling unit

and sample size. When you collect any sort of data, especially quantitative data,
whether observational, through surveys or from secondary data, you need to decide
which data to collect and from whom. This is called the sample. A sample is a
subset of the population being studied. It represents the larger population and is
used to draw inferences about that population.
.2.POPULATION

Population is a complete set of elements (persons or objects) that possess

some common characteristics defined by the sampling criteria established by the
researcher. The population focused for the study titled, ―A study on financial
planning for salaried employees and strategies for tax savings.‖ The responses can
be derived from family, relatives and peer groups in Kollegal.
.3.SAMPLING FRAME

―Sampling frame comprises all the elements of a population with proper

identification that is available to us for selection at any stage of sampling‖. In the
above case, sampling frame will be taken from all the persons who are working in
private/government organizations around Kollegal.
.4.SAMPLING UNIT

Every single unit or object inside the sampling frame is regarded as sampling
unit. Each person who is working in any organizations of sampling frame will be a
sampling unit.

3.6. PERIOD OF STUDY

 The period of study can be observed for three months starting from October
2024 to December 2024.

.7.RESEARCH HYPOSTHESIS

● There is no significant difference among various age group on their

preference of savings of regular income
● There is no significant difference among annual household income on
their regular spending pattern.
● There is no relationship among the respondent‘s regular contribution to
their retirement account with respect to gender.
● There is no association between the familiarity of investment markets
and risk tolerance to achieve higher level of return.
● There is no relationship between the regular savings pattern and
spending pattern of the respondents.

CHAPTER - 4

DATA ANALYSIS AND INTERPRETATION

4.1. PERCENTAGE ANALYSIS

TABLE 4.1 - Gender of the respondents

Gender Frequency Percentage

Male 106 65.03%
Female 57 34.97%
Grand Total 163 100.00%
Source: Primary Data, 2024
 CHART 4.1 - Gender of the respondents

INTERPRETATION

From the above table, 65.03% of the respondents are Male and 34.97% of the
respondents are Female.

TABLE 4.2 - Age of the respondents

Age Frequency Percentage

Below 20 years 1 0.61%
21-30 years 105 64.42%
31-40 years 45 27.61%
41-50 years 8 4.91%
51 years and above 4 2.45%
Grand Total 163 100.00%
Source: Primary Data, 2024
 A
2
%
2 Belo
6 31-40
years

CHART 4.2 – Age of the respondents

INTERPRETATION

From the above table, 64.42% of respondents are of 21-30 years of Age,
27.61% of respondents are of 31-40 years, 4.91% of respondents are of 41-50 years,
2.45% of respondents are of 51 years and above and the remaining 0.61 % of
respondents are of below 20 years.

TABLE 4.3 – Education details of respondents

Particulars Frequency Percentage

Higher secondary /
Diploma 10 6.13%
Graduate 97 59.51%
Post graduate 56 34.34%
Grand Total 163 100.00%
Source: Primary Data, 2024

P H
i
Post
Grad

CHART 4.3 – Education details of respondents

INTERPRETATION

From the above table, 59.51% of respondents are of graduate, 33.74% of

respondents are of Post graduate, 6.13% of respondents are of higher secondary /
diploma and the remaining, 0.61% of respondents are of PhD.

TABLE 4.4 – Marital Status of respondent

Particulars Frequency Percentage

Married 85 52.15%

Unmarried 78 47.85%

Grand Total 163 100.00%

Source: Primary Data, 2024

Marita
Un M

CHART 4.4 - Marital Status of respondents

INTERPRETATION

From the above table, 52.15% of the respondents are married and 47.85% of
the respondents are unmarried.
 remaining, 6.75% of the respondents are having 5 dependents.

TABLE 4.6 – Current employment of respondent

Current
Employment Frequency Percentage
Particulars

Government employee 11 6.75%

Private sector employee 152 93.25%

Grand Total 163 100.00%

Source: Primary Data, 2024

7
%

CHART 4.6 – Current employment of respondent

INTERPRETATION

From the above table, 93.25% of the respondents are of Government

employees and 6.75% of the respondents are of Private sector employees.
 TABLE 4.7 – Annual Household Income of respondent

Annual Household Income Frequency Percentage

Below Rs.2.5 lakh 20 12.27%
Rs.2.5 lakh - Rs.5 lakh 50 30.67%
Rs.5 lakh - Rs.10 lakh 60 36.81%
Rs.10 lakh and above 33 20.25%
Grand Total 163 100.00%
Source: Primary Data, 2024

Annual
2 1
Below
3 Rs.5
3

CHART 4.7 – Annual Household Income of respondent

INTERPRETATION
 From the above table, 36.81% of the respondents are getting Rs.5 lakh – Rs.
10 lakh gross annual household income, 30.67% of the respondents are getting Rs.
2.5 lakh – Rs.5 lakh gross annual household income, 20.25% of the respondents are
getting Rs.10 lakh and above gross annual household income and the remaining,
12.27% of the respondents are getting below Rs.2.5 lakh gross annual household
income.

TABLE 4.8 – The ability to manage respondents own finances

Ability of own finance

management Frequency Percentage
Very high 15 9.20%
High 46 28.22%
Moderate 85 52.15%
Low 11 6.75%
Very low 6 3.68%
Grand Total 163 100.00%
Source: Primary Data, 2024
 74 9
Ver
2 y
hig
5

CHART 4.8 - The ability to manage respondents own finances

INTERPRETATION

From the above table, 52.15% of the respondents ability to manage their own
finance is moderate, 28.22% of the respondents ability to manage their own finance
is high, 9.20% of the respondents ability to manage their own finance is very high,
6.75% of the respondents ability to manage their own finance is low and the
remaining, 3.68% of the respondents ability to manage their own finance is very low.

TABLE 4.9 – Current Financial Investments of the respondent

Current financial investments Frequency Percentage

Mutual Funds 33 20.20%
FD/RD/Bonds 74 45.40%
Provident Fund Account 52 31.90%
PPF Account 31 19.20%
Pension Fund Account 23 14.10%
 N N N N N
Buy a Planning for Buy a For Reduce
house childrens car reture housing/
education/ ment other loans
marriage purpos
c e
o
s
t
 CHART 4.10 – Major Savings Objectives of the
respondent

INTERPRETATION

From the above table, major savings objective of the respondents are rated
from highest to lowest between 1 to 5, highest major savings objectives of the
respondents is to buy a house, next to that is planning for children education /
marriage costs, next to that is planning for retirement purpose, next to that is to buy
a car and the lowest preference would be reducing housing/other loans.

TABLE 4.11 – Monthly Savings Percentage of the respondent

Monthly Savings Percentage Frequency Percentage

Less than 15% 44 26.99%
15% to 30% 56 34.36%
30% to 50% 51 31.29%
 50% and above 12 7.36%
Grand Total 163 100.00%
Source: Primary Data, 2024

Monthly
8
3 2 Less
3 15%
to

CHART 4.11 – Monthly Savings Percentage of the respondent

INTERPRETATION

From the above table, 34.36% of the respondents are saving 15% to 30% of
their monthly salary, 31.29% of the respondents are saving 30% to 50% of their
monthly salary, 26.99% of the respondents are saving Less than 15% of their
monthly salary and the remaining, 7.36% of the respondents are saving 50% and
above of their monthly salary.

TABLE 4.12 – Loan repayment percentage of respondent

Loan Repayment Percentage Frequency Percentage

Nil 24 14.72%
Less than 20% 47 28.83%
Between 20% - 35% 58 35.58%
Between 35% - 50% 24 14.72%
Over 50% 10 6.13%
Grand Total 163 100.00%
Source: Primary Data, 2024
Loan
6 1
1 Nil
2 Less
3 than

CHART 4.12 – Loan repayment percentage of respondent

INTERPRETATION
From the above table, 35.58% of the respondents are spending their monthly
salary between 20% - 35% in repaying loans, 28.83% of the respondents are
spending their monthly salary less than 20% in repaying loans, 14.72% of the
respondents are spending their monthly salary between 35% to 50% in repaying
loans, 14.72% of the respondents are not having any loans and the remaining, 6.13%
of the respondents are spending their monthly salary over 50% in repaying loans.

TABLE 4.13 – Respondents Regular Income Savings Pattern

 Spendi
I
2
5 I do
2.
37 I have a
definite

CHART 4.14 – Respondents Spending Pattern

INTERPRETATION

From the above table, 52.15% of the respondents carefully plan their big
purchases in advance, 25.15% of the respondents have a definite spending pattern
for their regular monthly expenses and the remaining, 22.70% of the respondents do
not spend in a planned manner.

TABLE 4.15 – Usage of Generally Planned Savings of the Respondent

Planned Savings are Generally Used to Frequency Percentage

Buy durable items like TV, LCD, Refrigerator, Cell phone,
Furniture, etc., 33 20.25%
Buy fixed deposit schemes 47 28.83%
Buy gold and ornaments 58 35.58%
Make planned investments in Mutual Funds 25 15.34%
Grand Total 163 100.00%
Source: Primary Data, 2024

Buy
1 2 durable

Buy
3 2 Make
planned

CHART 4.15 – Usage of Generally Planned Savings of the Respondent

INTERPRETATION
 From the above table, 35.58% of the respondents use their generally planned
saving to buy gold and ornaments, 28.83% of the respondents use their generally
planned savings to buy fixed deposit schemes, 20.25% of the respondents use their
generally planned savings to buy durable items like TV, LCD, Refrigerator, Cell phone,
Furniture, etc., and the remaining, 15.34% of the respondents use their generally
planned savings to make planned investments in mutual funds.

TABLE 4.16 – Provision for Emergency Fund to meet Exigencies

Provision for emergency fund to meet exigencies

of the respondent Frequency Percentage
Bank Fixed Deposit from 3 - 6 month‘s
salary/income 30 18.40%
I have not created an emergency fund 28 17.18%
Other avenues like Mutual Fund schemes, etc.: up
to 3-6 month salary/income 13 7.98%
Up to one month salary/income in Bank account 25 15.34%
Up to three month salary/income in Bank account 67 41.10%
Grand Total 163 100.00%
Source: Primary Data, 2024

8 Provision
0
Bank
from 3Fixed
- 6 Deposit
Mutual I have
A sche Ban Ban
xi mes,
s

CHART 4.16 – Provision for Emergency Fund to meet Exigencies INTERPRETATION

From the above table, 41.10% of the respondents have up-to three month
salary/income in bank account, 18.40% of the respondents having bank fixed
deposit from 3-6 month salary/income, 17.18% of the respondents have not created
an emergency fund, 15.34% of the respondents have up-to one month salary/income
 in bank account and the remaining, 7.98% of the respondents have invested
in other avenues like mutual fund schemes, etc.: up-to 3-6 month salary/income as
their provision for emergency fund to meet exigencies like loss of job, hospitalization
etc.,

TABLE 4.17 – Utilization of income tax benefits

Utilization of Income tax benefits, e.g.

deductions from salary/income, rebates, etc.
Frequency Percentage
Strongly agree 25 15.34%
Agree 69 42.33%
Neither agree nor disagree 51 31.29%
Disagree 15 9.20%
Strongly disagree 3 1.84%
Grand Total 163 100.00%

8
Utilization of
0

7
0A Strongly Ne Dis Str
xi Axi
s

Sour
ce: Primary Data, 2024
 CHART 4.17 – Utilization of income tax benefits

INTERPRETATION

From the above table, 42.33% of the respondents have agreed on utilizing
Income tax benefits, 31.29% of the respondents neither agree nor disagree on
utilizing Income tax benefits, 15.34% of the respondents strongly agreed on utilizing
Income tax benefits, 9.20% of the respondents disagree on utilizing Income tax
benefits and the remaining, 1.84% of the respondents strongly disagree on utilizing
Income tax benefits.

TABLE 4.18 – Income Tax Filing of the Respondents

Income tax filing during the year Frequency Percentage

Do not actively plan and meet most of my tax liability
from the last few month salary 35 21.47%
Estimate all income during the year, plan investments
availing maximum tax benefits 33 20.25%
Plan tax saving towards the end of the Financial Year 79 48.47%
Take the help of an expert like Chartered Accountant
(CA) 16 9.82%
Grand Total 163 100.00%
Source: Primary Data, 2024
7
0

Fre
6
1
0 By investing in By
investing inBy
CHART 4.19 – Income Tax Planning for Upcoming Years

INTERPRETATION

From the above table, 37.7% of the respondents are planning to take income
tax benefits by investing in term/life insurance, 27% of the respondents are planning
to take income tax benefits by investing in tax saver fixed deposit, 22.7% of the
respondents are planning to take income tax benefits by investing in NPS, PPF,
mutual funds and the remaining, 22.1% of the respondents are planning to take
income tax benefits by investing ULIP plans.

TABLE 4.20 – Respondents Regular Contribution to Retirement Account

Regular Contribution to Retirement

Account Frequency Percentage
Very High 12 7.36%
High 49 30.06%
Moderate 65 39.88%
Low 27 16.56%
Very Low 10 6.13%
Grand Total 163 100.00%

7
0

6
A 0
xi
s

Source: Primary Data, 2024

V Hig Mo Low V
er h d e
y er r
H a y
ig te L
h o
w
Percentage of 7.36 30.0 39. 16.5 6.13
Grand Total % 6% 88% 6% %
Respondents 12 49 65 27 10
Count

CHART 4.20 – Respondents Regular Contribution to Retirement

 Account INTERPRETATION
From the above table, 39.88% of the respondents who make regular
contribution to retirement account is moderate, 30.06% of the respondents do make
regular contribution to retirement account is high, 16.56% of the respondents do
make regular contribution to retirement account is low, 7.36% of the respondents do
make regular contribution to retirement account is very high and the remaining,
6.13% of the respondents do make regular contribution to retirement account very
low.

TABLE 4.21 – Planned Retirement Age of Respondent

Planned Retirement Age Frequency Percentage

Up to 45 15 9.20%
Up to 50 17 10.43%
Up to 55 37 22.70%
Up to 60 78 47.85%
Up to 65 16 9.82%
Grand Total 163 100.00%
Source: Primary Data, 2024

Planned
1 9 1
Up
4 2 to
45

CHART 4.21 – Planned Retirement Age of Respondent

INTERPRETATION
 From the above table, 47.85% of the respondents planned retirement age is up-
to 60, 22.70% of the respondents planned retirement age is up-to 55, 10.43% of the
respondents planned retirement age is up-to 50, 9.82% of the respondents planned
retirement age is up-to 65 and the remaining, 9.20% of the respondents planned
retirement age is up-to 45.

TABLE 4.22 – Pension Amount after Retirement of the Respondent

Pension Amount after Retirement Frequency Percentage

Equal to my current salary adjusted for price rise
(inflation) 29 17.79%
Equal to 50% of my current salary adjusted for price
rise (inflation) 62 38.04%
Equal to my current household expenses adjusted for
price rise (inflation) 55 33.74%
Equal to 80% of my current household expenses
adjusted for price rise (inflation) 17 10.43%
Grand Total 163 100.00%
Source: Primary Data, 2024

7 Pension
0

Equal Equal Equal to my

salary
A rise
AxcurrentEqual
xi
s

CHART 4.22 – Pension Amount after Retirement of the Respondent

INTERPRETATION

From the above table, 38.04% of the respondents want pension amount equal
to 50% of their current salary adjusted to price rise (inflation) after retirement,
33.74% of the respondents want pension amount equal to their current household
 expenses adjusted to price rise (inflation) after retirement, 17.79% of the
respondents want pension amount equal to their current salary adjusted to price rise
(inflation) after retirement and the remaining, 10.43% of the respondents want
pension amount equal to 80% of their current household expenses adjusted to price
rise (inflation) after retirement.

TABLE 4.23 – Familiarity of Investment Markets by respondents

Familiarity of Investment Markets Frequency Percentage

I am an experienced investor 4 2.45%
I have a basic understanding of investment
markets 68 41.72%
I have a strong understanding of
investment 41 25.15%
markets
I have no experience at all 50 30.67%
Grand Total 163 100.00%
Source: Primary Data, 2024

I have
I have a
Respon
I have a
I am an
0 2 4 6 8
CHART 4.23 – Familiarity of Investment Markets by respondents

INTERPRETATION

From the above table, 41.72% of the respondents understand investment

markets, 30.67% of the respondents have no experience at all with investment
markets, 25.15% of the respondents have a strong understanding of investment
markets and the remaining, 2.45% of the respondents are experienced investors in
 market.

TABLE 4.24 – Level of Risk Tolerance

Level of risk tolerance to achieve higher level of

return Frequency Percentage
I can accommodate to minor loss 62 38.04%
I cannot accommodate any loss 43 26.38%
I understand that in seeking higher returns I can
accept some loss 42 25.77%
In seeking higher return, I am prepared to accept a
loss 16 9.82%
Grand Total 163 100.00%
Source: Primary Data, 2024

1 I can

3 I cannot
2
I
understa
2 nd that in

CHART 4.24 – Level of Risk Tolerance

INTERPRETATION

From the above table, 38.04% of the respondents can accommodate to minor
loss, 26.38% of the respondents cannot accommodate any loss, 25.77% of the
respondents understand that in seeking higher returns they have to accept some loss
and the remaining, 9.82% of the respondents are prepared to accept a loss in order to
achieve higher level of return.

TABLE 4.25 – Respondents preferred investment instruments

Instruments Preferred to Invest Frequency Percentage

Fixed Deposit 65 39.90%
Mutual Funds 51 31.30%
Stocks/Share/Bonds 45 27.60%
NPS 38 23.30%
PPF 38 23.30%
Life insurance 48 29.40%
Medical insurance 36 22.10%
Grand Total 163 100.00%

Me
Preferred
dica
l
insu
0 1 2 3 4 5 6 7

Source: Primary Data, 2024

 Fixed Mutu Stocks/ NPS PPF Life Medic
Deposit al Share insuran al
Fund /Bonds ce insura
s nce
Freque 65 51 45 38 38 48 36
ncy
Percen 39.90% 31.30% 27.60% 23.30% 23.30% 29.40% 22.10%
tage

CHART 4.25 – Respondents preferred investment instruments

INTERPRETATION

From the above table, 39.9% of the respondents would prefer to invest in fixed
deposit, 31.3% of the respondents would prefer to invest in mutual funds, 29.4% of
the respondents would prefer to invest in life insurance, 27.6% of the respondents
would prefer to invest in stocks/share/bonds, 23.3% of the respondents would prefer
to invest in NPS, 23.3% of the respondents would prefer to invest in PPF and the
remaining, 22.1% of the respondents would prefer to invest in medical insurance.

TABLE 4.26 – Primary Need for Life Insurance Policy

Primary Need for Life Insurance Policy Frequency Percentage

Covering risk of life 19 11.66%
I do not have any life insurance policy 15 9.20%
Investing for long- term goals while covering
risk 53 32.52%
of life
Investing for my child's education 30 18.40%
Investing for my retirement 15 9.20%
Saving my income tax 31 19.02%
Grand Total 163 100.00%
Source: Primary Data, 2024
 Coveri
1 1 9 I do not
9 have any
1 3 life
Saving

CHART 4.26 – Primary Need for Life Insurance Policy

INTERPRETATION

From the above table, 32.52% of the respondents primary need for life
insurance policy is investing for long-term goals while covering risk of life, 19.02% of
the respondents primary need for life insurance policy is saving for income tax,
18.40% of the respondents primary need for life insurance policy is investing for my
child‘s education, 11.66% of the respondents primary need for life insurance policy is
covering risk of life, 9.20% of the respondents primary need for life insurance policy
is investing for retirement and the remaining, 9.20% of the respondents primary need
for life insurance policy is since they do not have any life insurance policy.

TABLE 4.27 – Respondents objective of life insurance policy

Objective of Life Insurance Policy Frequency Percentage

Cover pure risk without any consideration of return (even of
premium paid) 16 9.82%
Get at least the premium amount back if I survive the Plan
period 30 18.40%
Get market linked return on the amount of premium and
some life cover or pension 40 24.54%

Get some return on the premium if I survive the Plan period 53 32.52%
 respondents objective of life insurance policy is to cover pure risk without any
consideration of return (even of premium paid).

TABLE 4.28 – Reason for Medical Insurance

Reason for health cover(medical insurance) Frequency Percentage

Claim deduction from taxable income 48 29.45%
I have no health insurance policy 37 22.70%
Offset need for liquidating my financial assets in case
of hospitalization 78 47.85%
Grand Total 163 100.00%
Source: Primary Data, 2024
 Respon
Claim
2
4 I have
Offset
2
need for

CHART 4.28 – Reason for Medical Insurance

INTERPRETATION

From the above table, 47.85% of the respondents have taken health cover
(medical insurance) for themselves/family in order to offset need for liquidating my
financial assets in case of hospitalization, 29.45% of the respondents have taken
health cover (medical insurance) for themselves/family in order to claim deduction
from taxable income and the remaining, 22.70% of the respondents have taken
health cover (medical insurance) for themselves/family in order to have no health
insurance policy.

4.2 ANOVA TEST

One-way ANOVA is a statistical technique that is used to compare the means of

more than two groups.

STATISTICAL HYPOTHESIS

Null Hypothesis (H0 ) There is no significant difference among various age groups on
their preference of savings of regular income

Alternate Hypothesis (H1 ): There is significant difference among various age groups
on their preference of savings of regular income
TABLE 4.29: Showing descriptive statistics of the respondents

Descriptive
Statistics
Regular Savings Plan
95% Confidence
Interval for
Std. St Mean
N Me Deviati d. Lower Upper Minim Maxim
an on Err Bound Bound um um
or
21-3 1 3.00 3 3
0
years
Bel 10 3.10 0.815 0.080 2.94 3.25 1 4
ow 5
20
years
31-4 45 2.84 1.107 0.165 2.51 3.18 1 4
0
years
41-5 8 2.88 0.991 0.350 2.05 3.70 1 4
0
years
51 4 3.75 0.500 0.250 2.95 4.55 3 4
years
and

abo
ve
Total 16 3.03 0.912 0.071 2.89 3.17 1 4
3
Source: Primary Data, 2024

TABLE 4.30: Showing ANOVA of the respondents between various age groups on
their preference of savings of regular income

ANOV
A
Regular Savings Plan
 Sum Me
of d an F Sig
Squar f Squ .
es are
Between Groups 4.263 4 1.066 1.2 0.2
89 76
Within Groups 130.58 158 0.826
4
Total 134.84 162
7
Source: Primary Data, 2024 * Significant at 5% level

RESULTS

ANOVA was performed to examine the significant difference among various age
group on their preference of savings of regular income

Results of ANOVA showed P value (0.276) is more than 0.05 or p >.005 hence null
hypothesis is accepted. There is no significant difference among various age groups
on their preference of savings of regular income

.3.ANOVA TEST

One-way ANOVA is a statistical technique that is used to compare the means of

more than two groups.

STATISTICAL HYPOTHESIS

Null Hypothesis (H0 ) There is no significant difference among annual household

income on their regular spending pattern.

Alternate Hypothesis (H1 ): There is significant difference among annual household

income on their regular spending pattern.

TABLE 4.31: Showing descriptive statistics of the respondents

Descriptive Statistics
Spending Pattern
 95%
Confiden
ce
Interval
Std. St for Mean
N Mea Deviati d. Low Upp Minimu Maximu
n on Err er er m m
or Bou Bou
nd nd
Below Rs. 20 1.70 0.801 0.17 1.32 2.08 1 3
2.5 lakh 9
Rs.2.5 lakh - 50 1.76 0.822 0.11 1.53 1.99 1 3
Rs.5 lakh 6
Rs.5 lakh - 60 1.78 0.865 0.11 1.56 2.01 1 3
Rs.10 lakh 2
Rs.10 lakh 33 1.61 0.864 0.15 1.30 1.91 1 3
and above 0
Total 16 1.73 0.839 0.06 1.60 1.86 1 3
3 6
Source: Primary Data, 2024

TABLE 4.32: Showing ANOVA of the respondents among annual household income
on their regular spending pattern.

ANOVA
Spending
Pattern
Sum Mea
of df n F Sig.
Squar Squa
es re
Betwe 0.741 3 0.2 0.3 0.7
en 47 46 92
Group
s
Withi 113.3 15 0.7
n 82 9 13
Grou
ps
Total 114.1 16
23 2
Source: Primary Data, 2024 * Significant at 5% level
RESULTS

ANOVA was performed to examine the significant difference among annual

household income on their regular spending pattern.

Results of ANOVA showed P value (0.792) is more than 0.05 or p >.005 hence null
hypothesis is accepted. There is no significant difference among annual household
income on their regular spending pattern.

4.4. INDEPENDENT T TEST

The t test compares two averages (means) and test they are different from each other.
STATISTICAL HYPOTHESIS

Null Hypothesis (H0 ) There is no significant relationship among the respondent‘s

regular contribution to their retirement account with respect to gender.

Alternate Hypothesis (H1 ) There is significant relationship among the respondent‘s

regular contribution to their retirement account with respect to gender.

TABLE NO 4.33: Showing difference among the respondent‘s regular contribution to

their retirement account with respect to gender.

t-test for Equality of

Means
95%
Std. Confidence
Mean
Sig. (2- Error Interval of
t D Differe
tailed) Differ the
f nc e
en ce Difference
Upp
Low
e
er
r
Equal
varianc
e
s -0.83 59 0.409 -0.119 0.143 -0.40 0.1
1 6 68
assume
Gend d
e
r Equal
varianc
e
 s not -0.91 19.1 0.371 -0.119 0.13 -0.39 0.1
6 58 1 53
assume
d
Source: Primary Data, 2024 * Significant at 5% level

RESULTS

Results of T test of independence showed P value 0.409 is greater than 0.05 or p

>.005 hence null hypothesis is accepted. There is no significant relationship among

the respondent‘s regular contribution to their retirement account with respect to
gender.

4.5. CHI SQUARE TEST

A chi-square statistic shows a relationship between two categorical variables.

STATISTICAL HYPOTHESIS:

Null Hypothesis (H0 ): There is no association between familiarity of investment

markets and risk tolerance to achieve higher level of return.

Alternate Hypothesis (H1 ): There is association between familiarity of investment

markets and risk tolerance to achieve higher level of return.

TABLE 4.34: Showing cross tabulation between familiarity of investment markets and
risk tolerance to achieve higher level of return.

Level of Risk Tolerance

Total
Cannot Accept
Accept Accept
Accept Loss for
Minor Some
any high
Loss Loss
lo return
s
s
Extremely
Aware 2 1 0 1 4
Familia
rity of Slig 36 11 18 3 68
investme htly
nt Aw
are
markets Very 15 2 18 6 41
Aware
Not at all 9 29 6 6 50
Aware
Total 62 43 42 16 163

Source: Primary Data, 2024

TABLE 4.35: Showing Chi Square results between familiarity of investment markets
and risk tolerance to achieve higher level of return.

Chi-Square Tests
Asymptotic
Value D
Significance (2-
f
sided)

a
Pearson Chi- 52.374 9 0.023
Square
Likelihood Ratio 53.598 9 0.018

Linear-by-Linear
3.92 1 0.048
Association

N of Valid Cases 163

a. 6 cells (37.5%) have expected count less than 5. The minimum expected
count is .39.
Source: Primary Data, 2024 * Significant at 5% level

RESULTS

A chi-square test of independence was performed to examine the association

between familiarity of investment markets and risk tolerance to achieve higher level
of return.
Results of chi-square test of independence showed P value (0.023) is less than 0.05
or p > 005 hence null hypothesis is rejected. There is significant association between
familiarity of investment markets and risk tolerance to achieve higher level of return.

4.6. CHI SQUARE TEST

A chi-square statistic shows a relationship between two categorical variables.

STATISTICAL HYPOTHESIS:

Null Hypothesis (H0 ): There is no association between the regular savings pattern
and spending pattern of the respondents.

Alternate Hypothesis (H1 ): There is association between the regular savings pattern
and spending pattern of the respondents.

TABLE 4.36: Showing Cross tabulation between regular savings pattern and
spending pattern of the respondents.

Spending Pattern
Do not
Definite
Advanced Spend Total
Plan in
Spendi
Planne
ng
d
Pattern
Manne
r
Do not 5 5 1 11
save
Save as
Regul 10 4 18 32
per
ar plan
Savin Save
gs 33 13 15 61
something
Patter
 Sa
n ve 37 15 7 59
whatev
er
left

Total 85 37 41 163

Source: Primary Data, 2024

TABLE 4.37: Showing Chi Square results between regular savings pattern and
spending pattern of the respondents.

Chi-Square
Tests
Asymptotic
Val d Significance
ue f (2-sided)

Pearson Chi- a
25.882 6 0.001
Square
Likelihood Ratio 24.13 6 0.001

Linear-by- 8.641 1 0.003

Linear
Association
N of Valid Cases 163
a. 2 cells (16.7%) have expected count less than 5. The minimum expected count
is 2.50.
Source: Primary Data, 2024 * Significant at 5% level

RESULTS

A chi-square test of independence was performed to examine the relationship

between the regular savings pattern and spending pattern of the respondents.

Results of chi-square test of independence showed P value (0.001) is less than 0.05
or p> 005 hence null hypothesis is rejected. There is association between the regular
 savings pattern and spending pattern of the respondents.

CHAPTER - 5

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS

●The objectives of the study have been achieved

●Majority of the respondents for this survey is male
●Majority of the respondents are aged between 21-30 years.
●Majority of the respondents are graduates and married.
●Most of the respondents are having two dependents.
●Almost 93.25% of the respondents are private sector employees.
● Most of the respondent‘s annual household income is Rs.2.5 lakh – Rs.
5 lakh.
● Majority of the respondent‘s neither agree nor disagree their ability to
manage their own finance.
● The financial investment that most of the salaried employees have is
FD/RD/Bonds which is nearly 45.4% of the respondents.
●Majority of the investor‘s major savings objective is to buy a house.
● Most of the respondents are having 15% to 30% of their monthly
income in savings that is one third of the respondents.
● Most of the 35.58% of the respondent‘s loan repayment percentage
from their salary is around 20% - 35%.
●Most of the respondents say that they do save something every month.
●Majority of the respondents carefully plan their big purchases in advance.
● Almost one third of the respondents use their generally planned
savings to buy gold and ornaments that is 35.58%.
● Most of the respondent‘s provision for emergency fund to meet
exigencies is up-to three month salary/income in bank account.
●Most of the respondents have agreed on utilizing income tax benefits.

● Majority of the respondents plan tax saving towards the end of the
financial year for income tax filing during the year.
● Most of the investors are planning to take income tax benefits by
 investing in term/life insurance.
●Majority of the investor‘s contribution to retirement account is moderate.
●Majority of the respondents planned retirement age is up-to 60 years.
● Most of the respondents want pension amount equal to 50% of their
current salary adjusted to price rise (inflation) after retirement.
● Majority of the respondents have basic understanding of investment
markets.
● Most of the investors can accommodate minor loss in order to achieve
higher level of return.
●Majority of the respondents prefer to invest in fixed deposit.

● Almost of the respondent‘s primary need for life insurance policy is

investing for long-term goals while covering risk of life.
● Most of the respondent‘s objective of life insurance policy is to get
some return on the premium if they survive the plan period.
● Majority of the respondents have taken health cover for themselves/
family in order to offset need for liquidating my financial assets in
case of hospitalization
● There is no significant association between the major savings
objective and respondents monthly savings percentage.
● There is no significant difference among various age groups on their
preference of savings of regular income
● There is no significant relationship among the respondent‘s regular
contribution to their retirement account with respect to gender.
● There is significant association between familiarity of investment
markets and risk tolerance to achieve higher level of return.
● There is association between the regular savings pattern and spending
pattern of the respondents.

5.2. SUGGESTIONS

●Understand the investment objective and set investment goal

●Document all the income sources and organize the financial records

● Financial literacy among unmarried class of persons, especially

regarding investment, should be increased in order that they are more
inclined to invest.
● Start an emergency fund to meet the exigencies like loss of job,
hospitalization etc.,
● Investment seeking companies may target to persons who are
graduates. Postgraduates may also be targeted to be motivated
towards investments.
● It is important to understand how income taxes work, Persons falling
in income brackets of Rs.2-5Lac and Rs.5-10 Lac should be targeted
by investment seeking organizations.
● Income tax provisions should be more relaxed regarding investment its
returns moreover first exemption limit of income should be increased
and more relaxation is expected regarding filling of income tax return
by salaried persons.
● For outperformance of salaried investors, it's essential to form them
more knowledgeable regarding investment, investment products,
investment information and portfolio skills.
● It is suggested that investment should be made as per financial plans
which usually differs from individual to individual taking into
consideration once own specific need. After financial planning,
investments plans are to be prepared to obtain capital growth and
return appreciation.
● For safe and secured life and investment medium term investment
should be done. People may take peer advice for it. Investments are
instruments through which capital growth is often assured and
inflation are often fought against with the assistance of monetary
advisors. To earn profit and to possess profitability, investments could
also be finished future also.

● Persons should invest consistent with their gender, legal status, age
groups, educational level, annual income level, filing of tax return,
annual savings level, total annual investment, return on investment,
reason for investment, etc. considering various factors that determine
their personal investments decisions.
● Start saving for retirement to have a planned retirement pension,
Retirement is expensive, so you should ideally start saving for
 retirement when you start your first job. Even if you're performing on
getting out of debt, contribute up to the match offered by your
employer, this is often free money, after all.
● There are two ways to make money: earning it actively by working for
it or earning it passively, while you sleep, by saving or investing the
money you have in stocks, bonds, mutual funds, real estate, or other
financial instruments. Given that the long-term average annual return
of the stock market is 10%, or 6% or 7% when adjusted for inflation,
investing in the stock market is a great way for the average person to
build wealth.
● A financial plan is essential for taking control of your finances and
accomplishing specific goals. In short, a financial plan is a timeline for
the big milestones in your life.

5.3. CONCLUSION

Financial planning will help make sure the right balance between the inflow
and outflow of the funds. It allows the business entity or the person to
accommodate the changing market conditions and, in turn, revise their plan. Some
feel that saving regularly in bank recurring deposits or Systematic Investment Plans
(SIPs) in mutual funds is financial planning. But allocating savings and investments
in unplanned manner isn't enough to realize your life goals. And such investments
lead to inefficient utilization of your financial resources. To become rich or to realize
all of your goals like buying a house, car, dream vacation, child's education then on
you would like to form money work for you. Besides salary or business income won't
be sufficient enough. This is where financial planning involves your rescue. A budget
enables you to construct a road map to realize all the financial goals. It also helps
you build your contingency fund for any unforeseen needs which will arise.

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APPENDIX 1

QUESTIONNAIRE

1.Name of the respondent:

2.Gender:
a.Male
b.Female
c.Transgender
3.Age:
a.Below 20 years
b.21-30 years
c.31-40 years
d.41-50 years
e.51 years and above
4.Education details:
a.Higher secondary/Diploma
b.Graduate
c.Post graduate
d.Others (Please specify)
5.Marital status:
a.Married
b.Unmarried
6.Number of dependents:
7.Current employment:
a.Government employee
b.Private sector employee
8.Gross annual household income:
a.Below Rs.2.5 lakh
b.Rs.2.5 lakh – Rs.5 lakh
c.Rs.5 lakh – Rs.10 lakh
d.Rs. 10 lakh and above

9.How do you feel about your ability to manage your own finances?
a.Very high
b.Low
c.Moderate
d.Low
e.Very low

10. What are all the financial investment currently you hold (please tick as
 many applicable)
a.Mutual funds
b.FD/RD/Bonds
c.Provident fund account
d.PPF account
e.Pension fund account
f.Stocks and equity shares
g.Gold/precious metals/jewelry
h.NPS account
i.Life insurance
j.Medical insurance
k.Others(please specify)
11.Following are my major savings objectives
(Please rate your priority from 1-5, lowest to highest)

Major savings objective 1 2 3 4 5

Buy a house
Planningforchildren
education/marriage costs
Buy a car
For retirement purpose
Reduce housing/other loans

12. What percentage of your monthly salary that you can save

a.Less than 15%

b.15% to 30%
c.30% to 50%
d.50% and above
13. What percentage of your monthly salary is used to repay loans?
a.Nil
b.Less than 20%
c.Between 20% - 35%
d.Between 35% - 50%
e.Over 50%
14. How do you save from your regular income?
a.Save as per planned schedule
b.Save something every month
c.Save whatever is left after meeting expenses
d.Do not save regularly as expenses generally exceed income
15. How do you spend?
a.I have a definite spending pattern for regular monthly expenses
b.I carefully plan my big purchases in advance
c.I do not spend in a planned manner
16. Savings which were planned are generally used to
a.Make planned investments in Mutual Funds
b.Buy fixed deposit schemes
c.Buy gold and ornaments.

d. Buy durable items like TV, LCD, Refrigerator, Cell phone, Furniture,
etc.,
17. Which of the following have you provided towards Emergency Fund
to meet exigencies like loss of job, hospitalization, etc.?
a.Up to one month salary/income in Bank account
b.Up to three month salary/income in Bank account
c.Bank Fixed Deposit from 3 - 6 months‘ salary/income

d. Other avenues like Mutual Fund schemes, etc.: up to 3-6 month

salary/income
e.I have not created an emergency fund

18. I fully utilize Income Tax benefits, e.g. deductions from salary/
income, rebates, etc.
a.Strongly agree
b.Agree
c.Neither agree nor disagree
d.Disagree
e.Strongly disagree
19. How do you file Income Tax during the year?

a. Estimate all income during the year, plan investments availing

 maximum tax benefits
b.Plan tax saving towards the end of the Financial Year

c. Do not actively plan and meet most of my tax liability from the last
few month salary
d.Take the help of an expert like Chartered Accountant (CA)
20. How you are planning Income tax benefits for upcoming years?
a.By investing in tax saver fixed deposit
b.By investing in term/life insurance
c.By investing ULIP plans
d.By investing in NPS, PPF, Mutual funds
21. Do you make regular contribution to your retirement account?
a.Very High
b.High
c.Moderate
d.Low
e.Very Low
22. Planned retirement age?
a.Up to 45
b.Up to 50

c.Up to 55
d.Up to 60
e.Up to 65
23. What amount of pension would you need after retirement?
a.Equal to my current salary adjusted for price rise (inflation)
b.Equal to 50% of my current salary adjusted for price rise (inflation)

c. Equal to my current household expenses adjusted for price rise

(inflation)
d. Equal to 80% of my current household expenses adjusted for price
rise (inflation)
24. How familiar are you with investment markets?
a.I have no experience at all
b.I have a basic understanding of investment markets
c.I have a strong understanding of investment markets
d.I am an experienced investor

25. How comfortable are you with putting your initial investment at risk to
achieve a higher level of return?
a.I cannot accommodate any loss
b.I can accommodate to minor loss
c.I understand that in seeking higher returns I can accept some loss
d.In seeking higher return, I am prepared to accept a loss
26. Which instruments would you prefer to invest (tick as many applicable)
a.Fixed deposit
b.Mutual funds
c.Stocks/Share/Bonds
d.NPS
e.PPF
f.Life insurance
g.Medical insurance
h.Others (please specify)
27. You will opt Life Insurance policies primarily towards

a.Saving my income tax

b.Investing for long- term goals while covering risk of life
c.Investing for my child‘s education
d.Investing for my retirement
e.Covering risk of life
f.I do not have any life insurance policy
28. While taking Life Insurance policy, my objective is to
a.Get at least the premium amount back if I survive the Plan period
b.Get some return on the premium if I survive the Plan period

c. Get market linked return on the amount of premium and some

life cover or pension
d. Cover pure risk without any consideration of return (even of premium
paid)
e.With the above options, I would also prefer tax benefits

29. Why do you have taken health cover(medical insurance) for yourself/
family in order to
a.Claim deduction from taxable income
b.Offset need for liquidating my financial assets in case of hospitalization
c.I have no health insurance policy